Not too long ago, we’ve posted a story about how German company Schaeffler converted a conventionally-powered Ford Fiesta into an all-electric, rear-wheel-drive model, powered by two independent electric motors placed inside each of the rear wheels. Ford has now released more details and photos, plus a video showing how the electric Fiesta works.

Besides being friendly to the environment, this solution has some interesting space-saving benefits, as the space once occupied by the engine can be used as a secondary boot or for other uses.

Ford says that using this technology could lead in the future to the development of smaller, more agile cars optimized for urban areas, such as the ability to move sideways to park. It could also enable automakers to build four-seater cars that only occupy the space of a two-seater car today.

With in-wheel motors, the components required for drive, deceleration and driver assistance technologies are installed in an integrated wheel hub drive – including the electric motor, braking and cooling systems.

Inspired by this project, Ford will collaborate with Schaeffler, Continental, RWTH Aachen and the University of Applied Sciences, Regensburg, on project MEHREN (Multimotor Electric Vehicle with Highest Room and Energy Efficiency) with the goal of developing two new driveable vehicles by 2015. Until then, you can watch how the eWheelDrive Fiesta works in the video below.